If benefits were gradually eliminated it would eliminate the cliff. For example, cut benefits 60 cents for every dollar a beneficiary earns above $20 per week. This plan already exists in the Unemployment system.

It’s not a perfect analogy since people presumably prefer cash to in-kind handouts, but the vertical bars basically represent living standards for any given level of income that is earned (on the horizontal axis).

Needless to say, there’s not much reason to earn more income when living standards don’t improve. May as well stay home and goof off rather than work hard and produce.